Important news and information.

2024 Inflation Adjustments

On November 9, 2023, the IRS issued Revenue Procedure 2023-34, announcing the 2024 inflation-adjusted amounts for various tax items. Among them:
  • Estate and Gift Tax Exclusion Amount. For gifts made and estates of decedents dying in 2024, the exclusion amount will be $13,610,000 ($12,920,000 for gifts made and estates of decedents dying in 2023).
  • Gift Tax Annual Exclusion. For gifts made in 2024, the gift tax annual exclusion will be $18,000 ($17,000 in 2023).
  • Qualified Transportation Fringe Benefits. For 2024, an employee will be able to exclude up to $315 ($300 in 2023) per month for qualified parking expenses, and up to $315 a month ($300 in 2023) of the combined value of transit passes and transportation in a commuter highway vehicle.
  • Section 179. The amount that may be expensed in 2024 under Section 179 will be $1,220,000 ($1,160,000 for 2023). For 2024, the expensing limit will be reduced when more than $3,050,000 of expensing-eligible property is placed in service ($2,890,000 for 2023).
  • Small business exception. Taxpayers that qualify as "small businesses" under Section 448(c) are eligible for various exceptions and limitations under the tax law. For 2024, a business will be a “small business” if its average annual gross receipts (prior three years) do not exceed $30,000,000 ($29,000,000 for 2023). Small businesses can generally avoid:
    • The business interest limitation under Section 163(j).
    • Section 263A UNICAP.
    • The prohibition on the use of the cash method for C corporations and certain partnerships.
    • The requirement to keep inventories under Section 471. 
  • FSAs. The maximum salary reduction amount that an employee may elect in the case of a health FSA will be $3,200 in 2024 ($3,050 for 2023).
  • Standard deduction. The basic standard deduction for 2024 will be:
    • Joint return or surviving spouse $29,200 ($27,700 for 2023).
    • Single (not head of household or surviving spouse) $14,600 ($13,850 for 2023).
    • Head of household $21,900 ($20,800 for 2023).
    • Married filing separate returns $14,600 ($13,850 for 2023).


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